Long-haul fares unlikely to fall despite call from Chancellor
Long-haul air passengers are unlikely to see a further fall in fares or a reduction in fuel supplements in the next few months, despite this week’s call from the Chancellor George Osborne for companies to pass falling oil prices on to consumers.
The cost of crude oil has halved over the past 12 months to around $50 a barrel, its lowest level since 2008.
However, long-haul airlines including British Airways have given no indication that they are planning to cut fuel supplements that apply to most routes or reduce air fares.
As many airlines hedge much of their fuel, agreeing the price they will pay months or sometimes years in advance, they insist they won’t feel the benefit of the recent fall in oil prices for some time.
A spokeswoman for IAG, parent of British Airways, which charges fuel supplements ranging from zero on short-haul flights to £247 each way on premium seats on to Sydney, said the group had hedged 91% of its fuel in the last quarter of 2014 and 85% of its fuel in the first quarter of 2015, so it won’t feel much immediate impact from the recent fall in oil prices
"Fuel supplements have been around a long time and we have never covered the increase in fuel costs since prices started increasing 10 years ago. The current drop in oil prices has not had a significant effect on our overall costs," she said.
She added that there were also other factors to consider when working out the cost of fuel, such as currency fluctuations.
"We are a euro-based group so we buy in euros and therefore we are being affected by the strength of the US dollar."
An Emirates spokesperson said it closely monitors the price of jet fuel and reviews fuel supplements on an on-going basis, adding: "Like all airlines, Emirates offers a variety of fares throughout the year depending on market forces."
"Virgin Atlantic cut its fuel surcharge by £10 in December, saying at the time: "As an airline we buy much of our fuel months and years in advance which means that reductions in the prices of oil do not immediately impact our costs in the same way they would for prices of petrol at the pumps.
"However, our focus is on our customers and giving them the best service at a competitive price."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Airbnb eyes a loyalty program but details remain under wraps
Airlines suspend Madagascar services following unrest and army revolt
Qatar Airways offers flexible payment options for European travellers
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026